May 20 (Reuters) - Regional lender SouthState Corp ( SSB )

will buy smaller rival Independent Bank Group ( IBTX )

for about $2 billion, the companies said on Monday.

The all-stock deal will create a combined bank with total

assets of $65 billion and a market capitalization of about $8.2

billion. The transaction will also help deepen SouthState's ( SSB )

presence in Dallas-Fort Worth, Austin and Houston areas in Texas

and the Colorado Front Range.

The move underscores the growing consolidation in the U.S.

regional banking industry, which came under immense pressure

last year after the collapse of three mid-sized lenders.

Last month, regional bank UMB Financial ( UMBF ) agreed to

buy peer Heartland Financial in an about $2 billion

deal.

Shares of Independent Bank ( IBTX ) rose 9.3% before the bell. The

McKinney, Texas-based lender had about $18.9 billion in total

assets and $15.7 billion in total deposits as of March-end.

Winter Haven, Florida-based SouthState's ( SSB ) shares were up 1.4%

in light premarket trading volumes.

As part of the deal, Independent Bank ( IBTX ) shareholders will

receive 0.60 shares of SouthState ( SSB ) for each stock they own. The

deal values Independent Bank ( IBTX ) at $48.51 per share, which

represents a 10.4% premium to the stock's last close.

Three Independent Bank ( IBTX ) directors will also join SouthState's ( SSB )

board after the completion of the deal.

Raymond James and Keefe, Bruyette & Woods were the financial

advisers to SouthState ( SSB ) and Independent Bank ( IBTX ), respectively.

The deal is expected to close by the end of first quarter of

2025.